What are Title and Escrow?
One of the most frequently asked questions is: What are Title and Escrow?
Escrow is a neutral third party that reviews the contract, reviews the title reports, and holds the money. In many states, buyers and sellers use Attorneys to complete this work. In our state Escrow handles this role.
Here is how it is legally described:
At its essence, escrow is the process whereby parties to the transferor financing of real estate deposit documents, funds, or other things of value with a neutral and disinterested third party (the escrow agent), which are held in trust until a specific event or condition takes place according to specific, mutual written instructions from the parties. Escrow is essentially a clearinghouse for the receipt, exchange, and distribution of the items needed to transfer or finance real estate. When the event occurs or the condition is satisfied, distribution or transfer takes place. When all of the elements necessary to consummate the real estate transaction have occurred, the escrow is “closed”.
So what the heck does that mean??
Please watch these videos for an easier to understand description:
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